Technical Outlook & Trading Strategy:-
We reiterate our bearish outlook on the price of crude. As mentioned in the previous update the price action of crude since 24th Aug, 2011 has been taking shape of a bearish Head & shoulders pattern on its daily charts.
The price has now approached its neckline support levels placed around the Rs 3820--Rs 3800 levels.
Sustenance below these levels will lead to severe corrections in the prices of crude oil.
We recommend day / positional traders to take short positions between Rs 3850--Rs 3790 levels with a stop loss placed above Rs 3889 levels for downside targets of Rs 3740 / Rs 3700 levels expected to be achieved over the upcoming 2-3 sessions of trade.
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